Erdene Resource Development Corp (TSX:ERD, OTC:ERDCF) hailed the last year as “transformative” for the company as it has kicked off construction at its Bayan Khundii gold project in Mongolia.
The Canadian resource company in January announced a formal construction decision for Bayan Khundii and has since awarded the project’s engineering, procurement and construction services contract and entered into a power purchase agreement.
Construction ramp-up started in February with substantial completion expected by the year-end and commissioning scheduled for the first quarter of 2025.
“With early works complete, project finance secured, long-lead orders now arriving to site and the 2024 construction season underway, we are on track to produce first gold at Bayan Khundii in Q2 2025,” Erdene CEO Peter Akerley said.
“The Bayan Khundii gold mine is one of the highest grade, open pit gold mines under development globally and will be Mongolia’s largest primary gold producer when it reaches full production.”
The CEO added that the company continued to see exploration success across the Khundii Minerals District during the 2023 field season.
“We have established a pipeline of high-quality projects, including high-grade gold satellite deposits to Bayan Khundii, the large Altan Nar gold-polymetallic deposit and the vast Zuun Mod molybdenum-copper porphyry resource,” he said.
“We plan to work with our strategic partner Mongolian Mining Corporation (MMC) to build upon our exploration success to unlock new opportunities for the Mongolian mining sector, increase the industry’s contribution to the national economy and create long-term value for Erdene shareholders.”
In January, the company closed its strategic alliance with MMC to facilitate construction, with MCC investing US$40 million for a 50% equity interest in EM, the company holding the project.
Erdene retains a 50% equity interest in EM as well as a 5% net smelter return (NSR) royalty on production from the Khundii District after the first 400,00 ounces of gold production and a 100% interest in Zuun Mod.
For the 12 months ended December 31, 2023, Erdene recorded a net income of C$522,043 compared to a net loss of C$5.99 million in the same 12-month period a year prior.